Actually, the United States mortgage market was working just fine until the Bush tax cuts. Suddenly, there was a flood of capital into financial markets, seeking safe haven, as the stock market was in free fall. T Bills were not the most attractive investment, since the Fed had dropped interest rates so low. What other investment had a better rate of return, and historically had been rock solid? Mortgage bonds. Suddenly, capital floods the mortgage market, and there is more demand for bonds than there is supply. Due to the repackaging of mortgages into securities, mortgage lenders were insulated from the consequences of making bad loans. There was suddenly a lot of money to be made (and therefore a lot of pressure to do so) by mortgage lenders ignoring their fiduciary duty and issuing loans they knew could not be paid back. This exacerbated the problem caused by derivatives trading, heralded by the failure of Long Term Capital Management in 1998. But nice try blaming it on the black people. Dick.